mkt thoughts - ahead of CPI and FED

Broadly speaking: Weekly momentum remains positive from deeply oversold levels. Near-term pullbacks pending but how much downside does the anticipated downside move offer?

Rotation out of defensive themes Since the May's correction, defensive themes have outperformed XLG - (top 50) outperformed most groups in the market by recovering 9% since July 18th low. ` further on Large Cap out performance like the Dow Jones + 7% YTD.
In the past few weeks further confirmation of beta related rally. Further showcased by weakening relative strength iin utilities and Consumer Staples.

Searching overdone themes:

Recovery in Tech and Consumer - Along with other severely underperforming sub-groups. (like homebuilders, retailers etc).

Approaching upcoming 'daily sell' might be an an opportunity to reiterate working themes
Given the abundance of attractive charts, perhaps focusing on established leaders with strong relative strength can identify quality names. For example in technology...DRIV, ATML, ASML, MU, AKAM, WEBX, ORCL, CTSH, and VARI.

Plenty of Econ data approaching along with Fed decisions. And the start of earning season can all create shifts in Macro/broad market behavior. Making sectors themes even more significant.

TIVO: another media / NFL theme

TIVO: continuing on a media theme. Attractive pattern similar to DTV. $6-8 range for many days but a long worth sticking to with an exit at $6. Wheather playing the options market for a tight range in the near-term the bias of an upside move is attractive. Worthwile going long in this range while accumulating on any pullbacks and let the market figure out the rest.



Fool.com---

Go long, TiVo
The new pro football season kicked off on Thursday night. Earlier in the day, I had written about TiVo's (NASDAQ:TIVO)new service for fantasy football junkies. The DVR pioneer had teamed up with Sportsline.com -- a CBS(NYSE:CBS) online property -- to offer stats and other goodies to participants of its fantasy football leagues.

DTV: Direct TV- building stregth.

DTV:

As the NFL season is officially underway; many recognize Direct TV for the Sunday NFL package. Well, chart has built up with a strong relative performance and worth a look in media space.

Breakdown: Break above a multi-year trading range between $14-18. Difficult to find growth especially in small cap. Volume building positively here and despite strong recent price appreciation, - add to pullbacks.

Cable remains a competition but a theme Wall Street neglected and will play catch up to the buyers from earlier this spring.

Net/Net: attractive risk reward on pullbacks closer to 18. - An investment long with an exit around 16.50 with Major support at 14.